Every few months we find ourselves caught up in the debate surrounding the so-called death of bricks and mortar at the hands of ecommerce. Just a few years ago, as consumers took to their computers in droves to jump on the online shopping bandwagon, industry leaders began suggesting bricks and mortar stores were quickly becoming obsolete. However, while online dominates the conversation, consumers continue to demonstrate that you just can’t deny the power of the physical store.
We recently came across this great New York Times article which looked in-depth at the whole online vs. bricks and mortar debate, noting no great threat exists for the physical bricks and mortar store.
In fact, as the article notes, more and more previously online-only retailers are moving into the physical space, setting up pop-up shops, temporary stores-fronts, or permanent physical locations to meet the growing demands of their customers. Instead of leading to the death of bricks and mortar, ecommerce is actually motivating online retailers to offer both shopping mediums to their customers.
Money talks. As we continue to see online sales rise, the discussion of phase-outs is worthy. After all, online sales in the U.S. are expected to reach the $394 billion mark in 2017. However, this represents only 12% of total retail sales. Furthermore, those in-store sales influenced by consumer activities online are expected to account for 38% of all retail sales.
Clearly online and in-store are working in tandem.
The article if definitely worth a read. Check it out here: https://www.nytimes.com/2016/11/11/style/clicks-to-bricks-online-retailers-find-the-lure-of-a-store.html?smprod=nytcore-iphone&smid=nytcore-iphone-share&_r=3&mtrref=t.co.
So, online vs. bricks and mortar – who is winning the battle? As it stands, amidst constant pressure, bricks and mortar stores are still holding their own, and gathering allies as they do so. After all, while industry leaders can say what they like, customers are the ones who ultimately make the final decision about where to shop, and clearly their decision remains firmly rooted in the physical.
At Storesupport, we can help you deal with online competition, or help you thrive in the online space. Get in touch today: 1-877-421-5081.